Joyalukkas to launch IPO

Kochi-based jewelry chain Joyalukkas plans to tap the capital market in the next two or

three months. The company, which has already obtained SEBI approval for its initial public offering sized between Rs 600 to Rs 650 crores, has appointed Enam Securities and Citigroup Global Markets as advisors. Alukkas Varghese Joy, Managing Director, Joyalukkas, says they got the approval from SEBI to come out with an IPO of 1.8 crores equity shares. Post IPO, the promoters’ stake in the company would come down to 73.5 per cent from the current 100 per cent. The IPO proceeds will be used to fund its retail expansion and repay existing debts. The company will utilize about Rs 420 crore for network expansion, another Rs 120 crore for debt reduction. Currently, the gold and diamond retail chain has 22 stores with a large store presence in Kerala. It’s looking to set up 14 outlets by 2013. Moreover the company plans to double its retail space from the present 3.12 lakh sq. ft. by 2013. Apart from jewelry, it sells textiles, apparels and accessories located through its wedding centers across Kerala. The company has stores in the UK, the US and the UAE as well.

Joyalukkas is a popular jewelry retail chain that has rapidly expanded its presence across India in the past few years. Today, it has a strong presence in Tamil Nadu, Kerala, Karnataka and Andhra Pradesh and Pondicherry. The jewelry retailer has won many awards and recognition for its excellent business practices and skilled jewelry retailing. The most recent being the Retail Chain of the Year and Best Single Store (Joyalukkas Chennai Showroom) at the ‘National Jewellery Awards 2011” organized by the All India Gems and Jewellery Trade Federation (GJF). It has also been recognized for being The Highest VAT Paying Jewellery Group at the Kerala Gem and Jewellery Show organized by The Department of Industries and Commerce, Government of Kerala.